Last August, a Forbes article estimated the National Football League would rake in more than $9 billion in revenues in 2013, about the same amount earned by such firms as Hertz Global Holdings, Discover Financial Services, and W.W. Grainger. The article concluded, “The league remains the most lucrative in the world.”

Your editorial brought the remarkable news that the NFL is a tax-exempt organization. While most of us realize there is little rhyme or reason to the current tax code, I cannot fathom by what twisted logic or lobbying tour de force the NFL gained tax-exempt status.

The issue is not how much or how little the NFL pays its top management; it is the fundamental absurdity of the league’s exemption.

Sen. Tom Coburn, R-Okla., is to be applauded for his bill removing the NFL’s tax-exempt status. Colorado Sens. Michael Bennet and Mark Udall should be urged to sign on as co-sponsors.

T. Simmons, Denver

This letter was published in the Feb. 8 edition.

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It’s a good question. Players pay tax on their income, prorated in some of the states in which games are played, as do the executives cited in the linked editorial. Consumers pay sales tax on tickets, T-shirts and beer. Yet the league is apparently tax-exempt.

Not saying that’s a good or bad thing. The answer may lie, of course, in the league structure. TV-rights revenue is shared by the individual teams and is money that eventually gets paid to players (as well as concession contractors, equipment assistants and parking-lot attendants). The league also administers league operations — approve contracts and trades, discipline players and coaches, and arrange schedules and the minutia of getting 32 teams to 16 sites each Sunday for 17 weeks, plus the playoffs.

So the league office, itself, may not be making money. Could be a separate entity within the corporate structure sells the pantload of jerseys, hats and beer cozies that lead to NFL revenues — and presumably that entity pays the appropriate taxes?

Corporations theoretically owe taxes, and most pay. The NFL, etc., are tax exempt by law. They are also exempt from anti-trust laws.
I’ll stick with what I said.

primafacie

And the smart ones pass along that liability to consumers in one form or another, to the extent that the market will bear those increased “retail” prices.

peterpi

I’m not arguing that.
I’m just trying to educate Dano that most corporations owe tax, while the NFL, etc., which are also profit-making enterprises, are tax-exempt by law.

toohip

I do not understand this statement.

Dano2

I’m just trying to educate Dano that most corporations owe tax, while the NFL, etc., which are also profit-making enterprises, are tax-exempt by l

Wowie! The “OMG thanks for educating me on something I didn’t know!!!!” hilarity aside, you can’t even deconstruct your own argument, despite my italicizing the key parts that I focused on?!?

Best,

D

guesswhodrews

Dano, you are truly a troll. You post most of the time simply trying to be outrageous and insulting to whomever you are addressing.

Dano2

So what your argument was: corporations who are supposed to pay taxes but don’t have less talented lawyers/lobbyists than the NFL, who isn’t supposed to pay taxes. Brilliant!

Best,

D

guesswhodrews

Which industry pays the most in taxes? Come on DTJ, you know. Oil Companies. Which pay the least? Again you know DTJ. Solar and Wind energy companies (net receiver of taxes). And who are DTJ ‘s favorite companies? Hint. They don’t pay any taxes.

toohip

It’s a bigger problem regarding corporations, and we know there are “good” corporations like the NFL, and “bad” corporations like GE. Then we start looking at which large revenue generators who “seem” to be not a business, like political and religious organizations. . all in the “business” of “selling” a belief.

Dano2

we know there are …”bad” corporations like GE.

I remember when Neutron Jack retired and reporters got down on their knees in front of him while others slobbered and clambered to get in line for this Titan of Industry. We had to put up with hearing about the hero for weeks afterward, in the stained pages of the press. To one party, there are no bad corporations.

Best,

D

toohip

All billionaires and millionaires, corporations, business of any type . . good! Everyone taking a hand out or needing a hand out. . bad!
Bless the child that’s got his own!

toohip

The sales of NFL merchandise is taxed as is the revenue from TV-contracts. This seems to indeed be a “tempest in a tea pot,” because of the confusion of what revenue the NFL “league management” does take in and what’s taxed and what is not.

Dave52

You’re just mad because the Broncos lost.

peterpi

If the Broncos won, the NFL would still be tax-exempt.

guesswhodrews

I think all business should be tax exempt. It would cut down corruption in government and businesses don’t really pay taxes, they simply collect them.

DouglasH

The whole NFL tax exempt brouhaha is just a tempest in a tea pot. the NFL League Office is a tax exempt organization and all it does is manage the affairs of the league and its cost are covered by the teams, The League does not make a profit., The individual teams are taxable as they receive the revenue and expenses of running each team, That is where the profit is and that is taxable. The Post should be ashamed of itself for jumping into this Super Bowl sensationalism. Truly a non story

toohip

Sounds good until you do the research. First if this were true, and this obvious as you state, then all these media outlets. Sen. Coburn, and the like are complete idiots. That’s what makes the prudent person to ask, “what is the truth?”

The truth is, indeed the NFL is a shell organization that manages the affairs of the league, but they receive their income from the teams who pay “dues” to the tune of $250 million. In fact the NFL tax reporting for 2012 reported $255 million in income. That’ “$9 billion” is the income of all the various teams who do pay taxes. Same with the sales of NFL merchandising, which IS taxed. The profit of $250+ million per year should be taxed. Apparently the NHL does likewise. It seems it’s this oversight management without clear profit motives that drove the tax-exempt status, forgetting that the NFL receives “dues” from the teams to the tune of a quarter of a $billion/year.http://www.nbcnews.com/business/business-news/legal-procedure-critics-cry-foul-nfl-defends-nonprofit-status-f8C11412804

DouglasH

It is too bad that the general reporting on this implies that the entire league is a tax exempt setup., That is simply not true and it is irresponsible of any media outlet to mislead people.
The NFL office receives dues, income of 250 Million, from that it pays out expenses for their management services and come out even. Having an Income does not equate to the same amount in profit as you know.
It is not unusual for politicians to grand stand on an emotional issue, get in the paper and then forget about it next week. Likewise media outlets are there to attract viewers and readers first, then make the news fit.

toohip

Well the glass is only half empty. The fact that the NFL “office” doesn’t pay taxes on that $250 million IS still an issue, like so many other so called “non-profits” of huge impacts and revenues. The “expenses” the NFL pays out doesn’t reduce their income sufficiently that they don’t have a tax liability, is that what you’re suggesting? I agree with you about the politicians and media. . but who else is going to bring it to the attention of the people that “big businesses” are not paying their fair share of taxes, while the average citizen is?

toohip

Well this opens a whole pandora’s box of what other tax-exempt organizations with huge revenues should be looked at for taxation starting with political and religious organizations.

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